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Allison Transmission Announces Record Fourth Quarter and Full Year 2024 Results

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Allison Transmission (NYSE: ALSN) reported record financial results for Q4 and full year 2024. The company achieved all-time high full year net sales of $3.2 billion, up 6% from 2023, and record diluted EPS of $8.31, increasing 12% year over year.

Key highlights include record full year net sales of $1.8 billion in North America On-Highway market, decade-high sales in Defense end market (+28%), and all-time high sales in Outside North America On-Highway market. Q4 net sales reached $796 million, with net income of $175 million.

The company returned value to shareholders through increased quarterly dividends, $250 million in stock repurchases (over 3% of outstanding shares), and $101 million debt reduction. For 2025, Allison projects net sales between $3,200-$3,300 million, driven by price increases, increased Tracked vehicle demand, and robust North America vocational demand.

Allison Transmission (NYSE: ALSN) ha riportato risultati finanziari record per il quarto trimestre e per l'intero anno 2024. L'azienda ha raggiunto vendite nette annue record di 3,2 miliardi di dollari, in aumento del 6% rispetto al 2023, e un utile per azione diluito record di 8,31 dollari, con un aumento del 12% anno su anno.

Tra i punti salienti si segnalano vendite nette record nell'intero anno di 1,8 miliardi di dollari nel mercato On-Highway del Nord America, vendite decennali elevate nel mercato della Difesa (+28%) e vendite record nel mercato On-Highway al di fuori del Nord America. Le vendite nette del quarto trimestre hanno raggiunto i 796 milioni di dollari, con un utile netto di 175 milioni di dollari.

L'azienda ha restituito valore agli azionisti attraverso aumenti dei dividendi trimestrali, 250 milioni di dollari in riacquisti di azioni (oltre il 3% delle azioni in circolazione) e una riduzione del debito di 101 milioni di dollari. Per il 2025, Allison prevede vendite nette comprese tra 3.200 e 3.300 milioni di dollari, guidate da aumenti dei prezzi, dalla crescente domanda di veicoli cingolati e da una robusta domanda di veicoli commerciali nel Nord America.

Allison Transmission (NYSE: ALSN) reportó resultados financieros récord para el cuarto trimestre y para el año completo 2024. La compañía logró ventas netas anuales récord de 3,2 mil millones de dólares, un aumento del 6% respecto a 2023, y un beneficio por acción diluido récord de 8,31 dólares, incrementándose un 12% interanual.

Los aspectos destacados incluyen ventas netas anuales récord de 1,8 mil millones de dólares en el mercado On-Highway de América del Norte, ventas en el mercado de Defensa en su nivel más alto en una década (+28%), y ventas máximas en el mercado On-Highway fuera de América del Norte. Las ventas netas del cuarto trimestre alcanzaron los 796 millones de dólares, con un ingreso neto de 175 millones de dólares.

La compañía devolvió valor a los accionistas a través de aumentos en los dividendos trimestrales, 250 millones de dólares en recompra de acciones (más del 3% de las acciones en circulación) y una reducción de la deuda de 101 millones de dólares. Para 2025, Allison proyecta ventas netas entre 3.200 y 3.300 millones de dólares, impulsadas por aumentos de precios, una mayor demanda de vehículos de oruga y una sólida demanda de vehículos comerciales en América del Norte.

앨리슨 트랜스미션 (NYSE: ALSN)은 2024년 4분기와 전체 연도에 대한 기록적인 재무 결과를 보고했습니다. 이 회사는 3.2억 달러의 연간 순매출 기록을 달성했으며, 이는 2023년 대비 6% 증가한 수치이며, 희석 주당 순익은 8.31달러로 12% 증가했습니다.

주요 하이라이트에는 북미 온하이웨이 시장에서 1.8억 달러의 연간 순매출 기록, 방산 시장에서의 10년 최고 판매 (+28%), 북미 외 온하이웨이 시장에서의 사상 최고 판매가 포함됩니다. 4분기 순매출은 7억 9600만 달러에 달했으며, 순이익은 1억 7500만 달러였습니다.

회사는 배당금 증가, 2억 5천만 달러의 자사주 매입(발행주식의 3% 이상), 1억 1000만 달러의 부채 감축을 통해 주주에게 가치를 환원했습니다. 2025년을 위해 앨리슨은 가격 인상, 궤도가 있는 차량 수요 증가, 북미에서의 견고한 상업적 수요에 힘입어 32억에서 33억 달러의 순매출을 전망하고 있습니다.

Allison Transmission (NYSE: ALSN) a annoncé des résultats financiers record pour le quatrième trimestre et l'année entière 2024. L'entreprise a atteint un chiffre d'affaires net annuel record de 3,2 milliards de dollars, en hausse de 6 % par rapport à 2023, et un bénéfice par action dilué record de 8,31 dollars, augmentant de 12 % d'une année sur l'autre.

Les points forts incluent des ventes nettes annuelles record de 1,8 milliard de dollars sur le marché On-Highway en Amérique du Nord, des ventes au niveau décadal dans le secteur de la défense (+28 %), et des ventes toutes catégories confondues sur le marché On-Highway hors Amérique du Nord. Les ventes nettes du quatrième trimestre ont atteint 796 millions de dollars, avec un revenu net de 175 millions de dollars.

L'entreprise a restitué de la valeur aux actionnaires à travers des dividendes trimestriels augmentés, 250 millions de dollars de rachat d'actions (plus de 3 % des actions en circulation) et une réduction de la dette de 101 millions de dollars. Pour 2025, Allison prévoit des ventes nettes comprises entre 3,200 et 3,300 millions de dollars, soutenues par des augmentations de prix, une demande accrue de véhicules à chenilles et une forte demande de véhicules utilitaires en Amérique du Nord.

Allison Transmission (NYSE: ALSN) berichtete von Rekordfinanzergebnissen für das 4. Quartal und das gesamte Jahr 2024. Das Unternehmen erzielte Rekordumsätze von 3,2 Milliarden Dollar im gesamten Jahr, was einem Anstieg von 6% im Vergleich zu 2023 entspricht, und einen Rekordgewinn je Aktie von 8,31 Dollar, was einem Anstieg von 12% im Jahresvergleich entspricht.

Hervorzuheben sind die Rekordumsätze von 1,8 Milliarden Dollar im Nordamerika On-Highway-Markt, dekadenhohe Verkäufe im Verteidigungsmarkt (+28%) sowie Rekordverkäufe im On-Highway-Markt außerhalb Nordamerikas. Die Nettoumsätze im 4. Quartal beliefen sich auf 796 Millionen Dollar, mit einem Nettogewinn von 175 Millionen Dollar.

Das Unternehmen gab den Aktionären durch erhöhte quartalsweise Dividenden, 250 Millionen Dollar an Aktienrückkäufen (über 3% der ausgegebenen Aktien) und eine Schuldenreduzierung von 101 Millionen Dollar einen Wert zurück. Für 2025 prognostiziert Allison Nettoumsätze zwischen 3.200 und 3.300 Millionen Dollar, die durch Preiserhöhungen, eine steigende Nachfrage nach Kettenfahrzeugen und eine starke Nachfrage nach Nutzfahrzeugen in Nordamerika angetrieben werden.

Positive
  • Record full year net sales of $3.2 billion (+6% YoY)
  • Record diluted EPS of $8.31 (+12% YoY)
  • Strong Q4 net sales of $796 million
  • North America On-Highway market sales up $223 million
  • Defense end market sales increased 28%
  • $250 million in stock repurchases completed
  • $801 million operating cash flow for 2024
Negative
  • North America Off-Highway sales declined $55 million
  • Service Parts revenue decreased $33 million YoY
  • Outside North America Off-Highway sales dropped $7 million
  • Q4 Adjusted EBITDA decreased $7 million YoY

Insights

Allison Transmission's Q4 and full-year 2024 results showcase exceptional operational execution and market leadership. The record $3.2 billion in annual revenue, coupled with a 12% EPS growth to $8.31, demonstrates robust pricing power and operational efficiency. The company's performance is particularly impressive in three key areas:

1. Market Dominance: The North America On-Highway segment's record $1.8 billion in sales, driven by strong Class 8 vocational demand, reinforces Allison's market leadership position. The ability to implement price increases while maintaining volume growth indicates significant pricing power and brand strength.

2. Strategic Diversification: The Defense segment's 28% growth and record performance in Outside North America markets highlight successful market diversification. This reduces cyclical risk and opens new growth vectors, particularly in Asia where demand remains strong despite European softness.

3. Financial Strength: The company generated $801 million in operating cash flow, maintaining a healthy 80% operating cash flow to EBITDA conversion ratio. The balanced capital allocation strategy, including share repurchases and debt reduction, demonstrates strong financial stewardship.

Looking ahead, the 2025 guidance of $3.2-3.3 billion in revenue suggests continued momentum, supported by price increases and robust vocational demand. The projected adjusted EBITDA range of $1.17-1.23 billion indicates stable margins despite inflationary pressures, reflecting strong cost management and pricing power.

Of particular note is the company's working capital efficiency, with operating cash flow consistently strong despite growth investments. This financial flexibility, combined with strategic market positioning and pricing power, positions Allison well for sustained performance in 2025.

  • Record fourth quarter net sales of $796 million, leading to all-time high full year net sales of $3.2 billion
  • Record full year diluted EPS of $8.31, up 12% year over year

INDIANAPOLIS, Feb. 11, 2025 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN) today reported all-time high full year net sales of $3.2 billion, increasing 6 percent from 2023. Diluted EPS for the year increased 12 percent year over year to a record $8.31.

David S. Graziosi, Chair and Chief Executive Officer of Allison Transmission commented, "Closing out the year, unprecedented demand for Class 8 vocational vehicles persisted in the fourth quarter of 2024, leading to record full year net sales of $1.8 billion in our North America On-Highway end market. Driven by the realization of our growth initiatives, we achieved decade-high full year net sales in our Defense end market and all-time high full year net sales in our Outside North America On-Highway end market."

Graziosi continued, "In addition to notable top-line performance across multiple end markets, Allison's full year earnings per share increased 12 percent from 2023 to a company record diluted EPS of $8.31. In 2024, we returned cash to shareholders by increasing our quarterly dividend for the fifth consecutive year while repurchasing over $250 million of our common stock, representing over 3 percent of outstanding shares, and paying down $101 million of existing term loan debt. At the midpoint, we are guiding to another record revenue year for 2025 driven by price increases on certain products, increased demand for Tracked vehicle applications and robust North America vocational demand."

Full Year and Fourth Quarter Financial Highlights

Net sales for the year were $3,225 million. Year over year results were led by:

  • A $223 million increase in net sales in the North America On-Highway end market principally driven by strength in demand for Class 8 vocational and medium-duty trucks and price increases on certain products
  • A 28 percent increase in net sales in the Defense end market principally driven by increased demand for Tracked vehicle applications
  • A $16 million increase in net sales in the Outside North America On-Highway end market principally driven by higher demand in Asia and price increases on certain products, partially offset by lower demand in Europe

Net income for the year was $731 million. Diluted EPS for the year was $8.31. Adjusted EBITDA, a non-GAAP financial measure, for the year was $1,165 million. Net cash provided by operating activities for the year was $801 million. Adjusted free cash flow, a non-GAAP financial measure, for the year was $658 million.

Net sales for the quarter were $796 million. Year over year results were led by:

  • A 10 percent increase in net sales in the North America On-Highway end market principally driven by strength in demand for Class 8 vocational vehicles and price increases on certain products
  • A 5 percent increase in net sales in the Service Parts, Support Equipment and Other end market principally driven by price increases on certain products
  • An 8 percent increase in net sales in the Defense end market principally driven by increased demand for Tracked vehicle applications

Net income for the quarter was $175 million. Diluted EPS for the quarter was $2.01. Adjusted EBITDA for the quarter was $270 million. Net cash provided by operating activities for the quarter was $211 million. Adjusted free cash flow for the quarter was $136 million.

Full Year and Fourth Quarter Net Sales by End Market

 

End Market

2024

Net Sales ($M)

Year over Year

Variance ($M)

Q4 2024

Net Sales ($M)

Year over Year

Variance ($M)

North America On-Highway

$1,752

$223

$419

$39

North America Off-Highway

$8

($55)

$2

($3)

Defense

$212

$46

$68

$5

Outside North America On-Highway

$493

$16

$124

($4)

Outside North America Off-Highway

$97

($7)

$14

($24)

Service Parts, Support Equipment & Other

$663

($33)

$169

$8

Total Net Sales

$3,225

$190

$796

$21

 

Fourth Quarter Financial Results

Gross profit for the quarter was $373 million, an increase of $2 million from $371 million for the same period in 2023. The increase in gross profit was principally driven by price increases on certain products, partially offset by higher manufacturing expense.

Selling, general and administrative expenses for the quarter were $84 million, a decrease of $8 million from $92 million for the same period in 2023. The decrease was principally driven by lower intangible amortization expense.

Engineering – research and development expenses for the quarter were $54 million, flat from the same period in 2023.

Net income for the quarter was $175 million, an increase of $5 million from $170 million for the same period in 2023. The increase was principally driven by lower selling, general and administrative expenses, lower interest expense, net and higher gross profit, partially offset by unfavorable foreign exchange.

Net cash provided by operating activities was $211 million, a decrease of $27 million from $238 million for the same period in 2023. The decrease was principally driven by higher operating working capital funding requirements and higher cash income taxes.

Fourth Quarter Non-GAAP Financial Measures

Adjusted EBITDA for the quarter was $270 million, a decrease of $7 million from $277 million for the same period in 2023.

Adjusted free cash flow for the quarter was $136 million, a decrease of $50 million from $186 million for the same period in 2023. The decrease was driven by lower net cash provided by operating activities and higher capital expenditures.

Full Year 2025 Guidance

Allison expects 2025 net sales in the range of $3,200 to $3,300 million, net income in the range of $735 to $785 million, adjusted EBITDA in the range of $1,170 to $1,230 million, net cash provided by operating activities in the range of $800 to $860 million, capital expenditures in the range of $165 to $175 million, and adjusted free cash flow in the range of $635 to $685 million.

Conference Call and Webcast

The company will host a conference call at 5:00 p.m. EST on Tuesday, February 11, 2025 to discuss its fourth quarter 2024 results. The dial-in phone number for the conference call is +1-877-425-9470 and the international dial-in number is +1-201-389-0878. A live webcast of the conference call will also be available online at https://ir.allisontransmission.com.

For those unable to participate in the conference call, a replay will be available from 9:00 p.m. EST on February 11 until 11:59 p.m. EST on February 25. The replay dial-in phone number is +1-844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 13751140.

About Allison Transmission
Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway vehicles (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining, construction and agriculture) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a presence in more than 150 countries, Allison has regional headquarters in the Netherlands, China and Brazil, manufacturing facilities in the USA, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. Allison also has more than 1,600 independent distributor and dealer locations worldwide. For more information, visit https://allisontransmission.com.

Forward-Looking Statements
This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, wars and pandemics; global economic volatility; general economic and industry conditions, including the risk of recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including acts of war and increased trade protectionism; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.

Use of Non-GAAP Financial Measures
This press release contains information about Allison's financial results and forward-looking estimates of financial results which are not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. Non-GAAP financial measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability and comparability with other companies. Adjusted EBITDA as a percent of net sales is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to Adjusted EBITDA is Net income. The most directly comparable GAAP measure to Adjusted EBITDA as a percent of net sales is Net Income as a percent of net sales. Adjusted EBITDA is calculated as the earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by Allison Transmission, Inc.'s, the Company's wholly-owned subsidiary, Second Amended and Restated Credit Agreement. Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.

We use Adjusted Free Cash Flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that Adjusted Free Cash Flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted Free Cash Flow is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to Adjusted Free Cash Flow is Net cash provided by operating activities. Adjusted Free Cash Flow is calculated as Net cash provided by operating activities, after additions of long-lived assets.

Attachments

  • Condensed Consolidated Statements of Operations
  • Condensed Consolidated Balance Sheets
  • Condensed Consolidated Statements of Cash Flows
  • Reconciliation of GAAP to Non-GAAP Financial Measures
  • Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance

Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, dollars in millions, except per share data)












 


 Three months ended December 31,


 


 Years ended December 31,



2024


2023


2024


2023










Net sales


$                   796


$                   775


$                3,225


$                3,035

Cost of sales


423


404


1,696


1,565

Gross profit


373


371


1,529


1,470

Selling, general and administrative


84


92


337


357

Engineering - research and development


54


54


200


194

Operating income


235


225


992


919

Interest expense, net


(21)


(24)


(89)


(107)

Other (expense) income, net


(4)


5


(6)


15

Income before income taxes


210


206


897


827

Income tax expense


(35)


(36)


(166)


(154)

Net income


$                   175


$                   170


$                   731


$                   673

Basic earnings per share attributable to common stockholders


$                  2.03


$                  1.91


$                  8.40


$                  7.48

Diluted earnings per share attributable to common stockholders


$                  2.01


$                  1.91


$                  8.31


$                  7.40










 


Allison Transmission Holdings, Inc.


Condensed Consolidated Balance Sheets


(Unaudited, dollars in millions)
















 December 31,


 December 31,







2024


2023


ASSETS









Current Assets









    Cash and cash equivalents




$                   781


$                555


    Accounts receivable, net




360


356


    Inventories





315


276


    Other current assets




82


63


Total Current Assets




1,538


1,250











Property, plant and equipment, net



803


774


Intangible assets, net




822


833


Goodwill





2,075


2,076


Other non-current assets




98


92


TOTAL ASSETS





$                5,336


$            5,025











LIABILITIES









Current Liabilities








    Accounts payable




$                   212


$                210


    Product warranty liability




31


32


    Current portion of long-term debt



5


6


    Deferred revenue




41


41


    Other current liabilities




217


212


Total Current Liabilities




506


501











Product warranty liability




36


27


Deferred revenue




95


89


Long-term debt





2,395


2,497


Deferred income taxes




501


519


Other non-current liabilities




152


159


TOTAL LIABILITIES




3,685


3,792











TOTAL STOCKHOLDERS' EQUITY




1,651


1,233


TOTAL LIABILITIES & STOCKHOLDERS' EQUITY



$                5,336


$            5,025










 


Allison Transmission Holdings, Inc.


Condensed Consolidated Statements of Cash Flows


(Unaudited, dollars in millions)






















 


 Three months ended December 31,


 


 Years ended December 31,








2024


2023


2024


2023
















Net cash provided by operating activities




$                   211


$                   238


$                   801


$                   784
















Net cash used for investing activities (a)




(77)


(58)


(147)


(129)
















Net cash used for financing activities




(140)


(127)


(427)


(332)
















Effect of exchange rate changes on cash




(1)


1


(1)


-
















Net (decrease) increase in cash and cash equivalents



(7)


54


226


323
















Cash and cash equivalents at beginning of period



788


501


555


232


Cash and cash equivalents at end of period




$                   781


$                   555


$                   781


$                   555


Supplemental disclosures:













          Income taxes paid





$                    (40)


$                    (30)


$                  (190)


$                  (194)


          Interest paid





$                    (33)


$                    (36)


$                  (124)


$                  (131)


          Interest received from interest rate swaps



$                        2


$                        4


$                      12


$                      12
















(a)  Additions of long-lived assets






$                    (75)


$                    (52)


$                  (143)


$                  (125)















 

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)




















 Three months ended


 Years ended







 December 31,


 December 31,







2024


2023


2024


2023

Net income (GAAP)





$           175


$          170


$           731


$          673

plus:












    Income tax expense




35


36


166


154

    Depreciation of property, plant and equipment



29


28


111


109

    Interest expense, net




21


24


89


107

    Amortization of intangible assets




2


12


10


45

    Stock-based compensation expense (a)



6


5


26


22

    UAW Local 933 contract signing incentives (b)



-


-


14


-

    Unrealized loss on marketable securities (c)



1


2


9


1

    Pension plan settlement loss (d)




-


-


4


-

    Technology-related investments loss (gain) (e)



1


-


2


(3)

    Other (f)





-


-


3


-

Adjusted EBITDA (Non-GAAP)





$           270


$          277


$        1,165


$       1,108

Net sales (GAAP)





$           796


$          775


$        3,225


$       3,035

Net income as a percent of Net sales (GAAP)



22.0 %


21.9 %


22.7 %


22.2 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)



33.9 %


35.7 %


36.1 %


36.5 %














Net cash provided by operating activities (GAAP)



$           211


$          238


$           801


$          784

Deductions to reconcile to Adjusted free cash flow:










    Additions of long-lived assets




(75)


(52)


(143)


(125)

Adjusted free cash flow (Non-GAAP)




$           136


$          186


$           658


$          659














(a)

Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development).

(b)

Represents non-recurring incentives (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development) to eligible employees as a result of International Union, United Automobile, Aerospace and Agricultural Implement Workers of America ("UAW") Local 933 represented employees ratifying a four-year collective bargaining agreement effective through November 2027.

(c)

Represents losses (recorded in Other (expense) income, net) related to an investment in the common stock of Jing-Jin Electric Technologies Co. Ltd.

(d)

Represents a non-cash settlement charge (recorded in Other (expense) income, net) for a pro rata portion of previously unrecognized pension plan actuarial net losses associated with the pension risk transfer of a portion of our salaried defined benefit pension plan obligations to a third-party insurance company.

(e)

Represents losses (gains) (recorded in Other (expense) income, net) related to investments in co-development agreements to expand our position in propulsion solution technologies.

(f)

Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended.

 

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance

(Unaudited, dollars in millions)










Guidance




Year Ending December 31, 2025




Low


High

Net income (GAAP)


$                 735


$                 785

plus:











Income tax expense


185


195

Depreciation of property, plant and equipment


123


123

Interest expense, net


91


91

Amortization of intangible assets


7


7

Stock-based compensation expense (a)


29


29













Adjusted EBITDA (Non-GAAP)



$             1,170


$             1,230







Net cash provided by operating activities (GAAP)



$                 800


$                 860

Deductions to reconcile to Adjusted free cash flow:






    Additions of long-lived assets



$               (165)


$               (175)

Adjusted free cash flow (Non-GAAP)



$                 635


$                 685













(a)

Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development).

 

Allison Transmission Holdings Inc. Logo (PRNewsfoto/Allison Transmission Holdings Inc.)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/allison-transmission-announces-record-fourth-quarter-and-full-year-2024-results-302373908.html

SOURCE Allison Transmission Holdings Inc.

FAQ

What were Allison Transmission's (ALSN) full year 2024 financial results?

Allison Transmission reported record full year net sales of $3.2 billion (up 6% YoY) and record diluted EPS of $8.31 (up 12% YoY) for 2024.

How much did ALSN return to shareholders in 2024?

ALSN repurchased over $250 million of common stock (representing over 3% of outstanding shares), increased quarterly dividends, and paid down $101 million in term loan debt.

What is Allison's revenue guidance for 2025?

Allison expects 2025 net sales between $3,200 to $3,300 million, with net income ranging from $735 to $785 million.

How did ALSN's Defense segment perform in 2024?

The Defense segment achieved decade-high sales with a 28% increase, primarily driven by increased demand for Tracked vehicle applications.

What were ALSN's Q4 2024 earnings results?

In Q4 2024, ALSN reported net sales of $796 million, net income of $175 million, and diluted EPS of $2.01.

Allison Transmission Hldgs Inc

NYSE:ALSN

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